Senator Tom Kean, Jr.

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Senate Republicans Tom Kean, Jennifer Beck and Steven Oroho are introducing legislation on Monday to boost charitable giving to New Jersey nonprofits that are on the front lines serving millions of children and families.

Senate Republicans Tom Kean, Jennifer Beck and Steven Oroho will introduce legislation establishing a state income tax deduction for gifts to New Jersey charities. (SenateNJ.com)

This legislation will establish a charitable deduction for state income tax filers on the money and gifts they provide to charities operating in New Jersey. This new bill is a modified version of bipartisan S-334, originally created and introduced in 2007 by Senate Republican Leader Kean.

“New Jersey is blessed to be served by an array of charities supporting children, families and seniors in need,” said Kean (Union, Somerset, Morris). “A host of nonprofit educational, cultural and civic organizations make our communities safer and stronger. As we have learned on many occasions, such as the aftermath of Superstorm Sandy, charities are often the first to mobilize to help in times of crisis before government resources are available.”

“Nonprofit organizations work tirelessly for communities, help the state and local governments provide essential public services and create jobs and volunteer opportunities for people of all ages,” said Beck (Monmouth). “Yet it’s extremely difficult for nonprofits here to garner steady charitable giving from residents and small business owners, because, by most measures, New Jersey ranks dead last and second to last in the nation in overall tax burdens.”

The Senators noted that New Jersey lost $19 billion in net taxable income from 2004 to 2014, according to the latest IRS data, which shows exactly how much potential revenue and donations are flying out the window due to New Jersey’s noncompetitive tax structure.

“While the generous people of New Jersey are appreciative of these safety-net services, charitable giving has declined because of noncompetitive state tax policies and this state’s nation-high tax burden,” said Oroho (Sussex, Warren, Morris). “New Jersey is one of just 16 states without an income tax deduction for charitable giving. Connecticut, Delaware, New York and North Carolina are among dozens of states with lower income taxes than New Jersey and a deduction for charitable giving.”

From 2004 to 2008, $70 billion in wealth left New Jersey, while the state’s charitable capacity declined by $1.13 billion, expressly due to a series of crippling changes in the state’s tax structure that made this state noncompetitive compared to neighboring states, according to Boston College’s Center on Wealth and Philanthropy.

“Democrat leaders signed on as co-sponsors of my original bill, and I welcome them to join us in pushing this new legislation,” Kean said. “We are hopeful that this new legislation, presenting greater opportunities for people and charities, will swiftly pass.”